Posted by LJ on 5/2/07 11:48am
Msg #188436

Borrower signing 2 different loans with 2 different compan

Called to confirm a closing and was told by the borrower that she already signed with another company. I said ok and called TC and informed them. Today, TC called back and said could I call her again and make sure. Is this my job? They said the lender has been in touch with her and have set a 5pm closing time. So, I called the borrower again and she said she did sign last night with another company and is going to use the RTC and cancel the other loan and will sign this loan also. I think she is taking a huge risk by signing 2 loans with 2 different companies back to back. If it was me, I certainly would make sure that the other loan is cancelled completley before I sign for another one. Any advice on this. Thanks

Reply by Charm_AL on 5/2/07 12:16pm
Msg #188440

we cannot make judgements, so, sign it and note it.

Reply by Charles_Ca on 5/2/07 12:40pm
Msg #188448

Like Charm said we don't judge...

As long as the customer swears to the statements presented you don't know the complete situation. Notaries are not the real estate police. However that being said I used to work with one engineer and he was building his real estate portfolio and at one time had had 7 loans he was trying to close simultaneously so that they didn't know each other. I thought the poor guy was going to have a heart attack but he managed to do it over and over and is now a very wealthy man.

Reply by Lee/AR on 5/2/07 1:13pm
Msg #188453

I've signed a man who has played this game 3 times now. He signs 'em both & cancels 1...after trying to play one loan off against the other. Which LO will blink first? I think he just likes the game.

Reply by LJ on 5/2/07 1:18pm
Msg #188454

Thanks. This is the first time that I know of that this has happened. Personally, I would be scared to death that the cancellation wouldn't go through in time and I'm stuck with 2 loans. I guess it is a way to get a better deal. Takes guts I guess I don't have.

Reply by ReneeK_MI on 5/3/07 4:19am
Msg #188553

Red flag here ...

This is also a classic in mtg fraud, in the event of cash-outs, in areas where recording is post-funding and there's a sufficient time lag.

Borrower signs multiple cash-outs simultaneously and HOPES one doesn't find out about the other before funding. Skates with the cash, and whatever title co's insured the mtgs that were NOT first to record are left holding the bag. I've seen it happen and also saw it close down a t/a office when they had to send the lender back their money.

I would make sure each title co knew about the other deal(s).